Q&A

Can I get a car loan without knowing what car I want?

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Can I get a car loan without knowing what car I want?

Some lenders have a list of approved car dealers, so make sure you verify that the dealership at which you’re shopping is on it. If you are undecided about what new car you want, many lenders will give you a sort of “blank check” that isn’t limited to a certain car or dealer.

Do you have to make a certain amount to finance a car?

Get Car Financing. Even with poor credit. There’s no universal minimum monthly income for a car loan because it varies by lender, but most require you to make at least $1,500 a month before taxes.

Is it better to get an auto loan from your bank or the dealership?

While it may seem more convenient to shop for a car and secure financing all in one place at the dealership, getting a car loan from a bank may be a better choice. A loan through a dealer also may end up being more expensive because of interest rate markups.

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How long does it take to get preapproved for a car loan?

The lender will need specific information from you. Once you supply this information, the pre-approval process takes about 24 hours — sometimes less. Auto loan pre-approvals are generally valid for up to 60 days, but your specific lender will be able to give you a definite time frame.

What do you need to qualify for a car loan?

Here are the documents you need to get a car loan:

  1. Proof of Income. Most lenders require proof that a borrower is actively earning income to ensure he can make his car payment.
  2. Proof of Residence.
  3. Proof of Insurance.
  4. Identification.
  5. Credit and Financial History.
  6. Vehicle Information.
  7. Trade-in Documentation.

What do I need to get approved for a car loan?

Should I tell dealer I already have financing?

Most finance experts suggest holding back the fact that you have a pre-approval until you’ve settled on the price of the vehicle. It’s possible that telling the dealer you have car financing right at the start could harm your chances to negotiate on the selling price of the vehicle you’re looking at.

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Can you finance a car through dealership?

Financing Through the Dealer Dealer-arranged financing works the same way as bank financing—the only difference is that the dealer is doing the work on your behalf. After you choose your vehicle, the dealer will have you fill out a credit application, which they’ll submit to multiple lenders.

How do car dealerships check your income?

Banks and finance companies verify income for auto loans for marginal applicants by reviewing proof of earnings documents provided by the individual. Lenders might look at offer letters, recent paystubs, tax returns, W2 forms, and bank statements but rarely consider sources that legally bar wage garnishment.

Can I get a car loan without a job?

Consider Obtaining a Co-signer – having someone co-sign your auto loan is a good option for those who need a car but don’t currently have a job. Show Proof of Other Income – sometimes you may not have formal employment, but you have other sources of income that would help you to qualify for an auto loan.

What should I look for when applying for a car loan?

It’s a good idea to check your credit scores and reports before you apply for a car loan. If you have weaker credit, you’ll probably end up with higher interest rates than if you had better credit. You’ll have to decide whether to proceed with getting a car loan, or wait and work to improve your credit first.

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Where can I get an auto loan for my car?

Auto loans are available from traditional banks (Bank of America, Chase, Wells Fargo), credit unions (USAA, Boeing Employees Credit Union) or an online lender such as Capital One or Up2Drive. The interest rates and requirements will vary by lender, so it doesn’t hurt to shop around.

Where can I get preapproved for a car loan?

Getting preapproved is the closest you can come to the perks of paying with cash while not having to save up for months or years in advance. You can get preapproved for a car loan at a bank, credit union or online lender. Ready to sell? Get a no-obligation offer for your car in minutes Where Can I Get Preapproved for a Car Loan?

How do I buy a car with multiple lenders?

1. Check your credit report 2. Apply for auto loans from multiple lenders 3. Get preapproved for an auto loan 4. Use your loan offer to set your budget 5. Find your car 6. Review the dealer’s loan offer